RAND MINING LIMITED — Interim / Quarterly Report 2011

Oct 27, 2010

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October 28, 2010

The Listing Manager Australian Securities Exchange Level 4 20 Bridge Street SYDNEY NSW 2000

Quarterly Report for September 2010

Highlights

• During the quarter, 57,408 tonnes of Raleigh ore were processed and 19,793 oz of gold and 2,557 oz of silver were credited to Rand and Tribune Bullion Accounts. (Rand’s share is 25%)

• At the end of the quarter

approximately 15,600 tonnes of Raleigh ore at an estimated grade of 12.5 g/t remain as a Bed Blend Stockpile on the ROM pad at the Raleigh Mine (Rand’s entitlement is 12.5%)

no Raleigh ore remains on the ROM pad at the Rubicon Mine (Rand’s share is 25%)

approximately 20,600 tonnes of Raleigh ore at an estimated grade of 12.0 g/t remains on the ROM pad at the Greenfields Plant (Rand’s share is 25%)

no gold was in transit between the Greenfields Plant and AGR (Rand’s share is 25%)

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GEOLOGY AND MINING

EAST KUNDANA JOINT VENTURE

Raleigh Underground Mine Production

Stope production from the 6136, 6119, 6102, 6085, 6067, 6051, 6034, 6017, 6000, 5983, 5966, 5949, 5932, 5915, 5898, 5881, 5864, 5847, 5830, 5812, 5795 and 5778 levels continued during the quarter.

Contained gold in stope development and stope ore mined during the quarter, estimated by grade control face chip sampling, is tabulated below:

the quarter. Contained gold in stope development and stope ore mined during the quarter, estimated grade control face chip sampling, is tabulated below:	the quarter. Contained gold in stope development and stope ore mined during the quarter, estimated grade control face chip sampling, is tabulated below:	the quarter. Contained gold in stope development and stope ore mined during the quarter, estimated grade control face chip sampling, is tabulated below:	the quarter. Contained gold in stope development and stope ore mined during the quarter, estimated grade control face chip sampling, is tabulated below:
RALEIGH UNDERGROUND GRADE CONTROL ESTIMATES
Month	Tonnes	Grade	Ounces
	t	g/t	troy oz
July	28,848	13.8	12,789
August	26,543	11.3	9,607
September	29,573	12.5	11,903
September 10Q	84,965	12.6	34,299
June 10Q	83,537	12.8	34,391

Rand’s Entitlements (12.5%)

September 10Q	10,621	12.6	4,287
June 10Q	10,442	12.8	4,299

Approximately half of the ore mined in September was hauled in September. 15,600 tonne remains as a Bed Blend Stockpile on the ROM pad at the Raleigh Mine and will be hauled in early October.

Raleigh Underground Mine Development

The Raleigh Underground Decline was extended to the 5647 m RL, 698 m from the surface.

Development progressed on the 5744, 5722, 5705, 5688, 5671 and 5654 levels.

	RALEIGH UNDERGROUND DEVELOPMENT
Month	Capital			Operating
	Decline (m)	Secondary (m)	Waste (m)	Ore (m)	Paste Fill (m)
July	27.1	7.1	176.7	194.5	70.0
August	0.0	0.0	146.1	172.2	55.0
September	0.0	0.0	83.3	199.4	60.0
September 10Q	27.1	7.1	406.1	566.1	185.0
June 10Q	97.1	321.8	302.9	562.0	155.0

The diagrams below show the status of the mine at the end of each month of the quarter.

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July 10 Red indicates new development
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August 10 Red indicates new development

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September 10 Red indicates new development

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Mine operating costs incurred during the September 2010 Quarter were $177 per tonne mined or $439 per ounce mined compared with the June 2010 Quarter costs of $157 and $382 respectively.

Toll Processing

During the quarter, 71,800 tonnes (wet) of Raleigh ore (47,900 tonnes from the Raleigh ROM pad and 23,900 tonnes from the Rubicon ROM pad) were hauled to the Greenfields Plant. The fifteenth toll treatment campaign at the Greenfields Plant, which started on August 12, 2010, finish on September 9, 2010. During the quarter, 57,408 tonnes of Raleigh ore were processed. At the end of the quarter, approximately 20,600 tonnes of Raleigh ore remains on the ROM pad at the Greenfields Plant.

the ROM pad at the Greenfields Plant.	the ROM pad at the Greenfields Plant.	the ROM pad at the Greenfields Plant.	the ROM pad at the Greenfields Plant.
Bullion accredited to RAND and TRIBUNE
Quarter	Gold(oz)	Silver(oz)	Rand’s sharegold
September 10	19,812.315	2,560.608	4,953.076
June 10	26,535.275	3,598.425	6,633.819

Resource Development

Agreements are being drafted for the financing and development of the Rubicon project with a financial institution and Barrick. The project is expected to start before the end of 2010.

EKJV Exploration

The bulk of the Exploration Budget in the 10/11 Financial Year is committed to the Raleigh Deeps drilling program. The first phase is expected to be completed in early 2011.

OTHER EXPLORATION

Wongan Hills (Rand’s Interest 100%)

Earlier this year, reconnaissance exploration delineated several uranium anomalies for follow‐up exploration. The company is reviewing the potential of these targets with a view to planning further work.

Seven Mile Hill Joint Venture (Rand’s Interest 50%)

Discussions to farm out the Seven Mile Hill tenements are continuing.

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001, 01/06/10.

Name of entity

Rand Mining NL

	ABN 41 004 669 658 Consolidated statement of cash flows		Quarter ended (“current quarter”) 30 September 2010	Quarter ended (“current quarter”) 30 September 2010
			30 September 2010
Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material) Net Operating Cash Flows			Current quarter $A’000	Year to date (3 months) $A’000
			3,383 (168) (152) (2,874) (398) ‐ 38 ‐ (255) ‐	3,383 (168) (152) (2,874) (398) ‐ 38 ‐ (255) ‐
			(426)	(426)
Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid to other entities 1.12 Loans from other entities Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)			‐ ‐ (145) ‐ ‐ 2 (24) ‐ 156	‐ ‐ (145) ‐ ‐ 2 (24) ‐ 156
			(11)	(11)
			(437)	(437)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Appendix 5B Mining exploration entity quarterly report
1.13 Total operating and investing cash flows (brought forward)	(437)	(437)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other (provide details if material) Net financing cash flows	‐ ‐ ‐ ‐ ‐ ‐	‐ ‐ ‐ ‐ ‐ ‐
	‐	‐
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end ofquarter	(437) 3,508 ‐	(437) 3,508 ‐
	3,071	3,071

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
		(67)
		(23)
1.25	Explanation necessaryfor an understandingof the transactions
	Directors fees and superannuation (included in administration 1.2(d)) (60) Royalty payment (included in production 1.2(c)) (7) Included in the aggregate amount of loans received from other entities (item 1.12) is the following: • Tribune Resources NL 100

Non‐cash financing and investing activities

• 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

Not applicable

• 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

Not applicable

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

Financing facilities available Add notes as necessary for an understanding of the position.
3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
	‐	‐
	‐	‐

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	200
	300
	1,500
	400
Total	2,400

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as	Current quarter	Previous quarter
shown in the consolidated statement of cash flows) to	$A’000	$A’000
the related items in the accounts is as follows.
5.1 Cash on hand and at bank	2,938	3,375
5.2 Deposits at call	133	133
5.3 Bank overdraft	‐	‐
5.4 Other (provide details)	‐	‐
Total: cash at end of quarter(item 1.22)	3,071	3,508

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed	Tenement reference	Nature of interest (note (2))	Interest at beginning ofquarter	Interest at end of quarter

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

6.2	Interests in mining
	tenements acquired or
	increased

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

	Total number	Number quoted	Issue price per security (see note 3) (cents)	Amount paid up per security (see note 3) (cents)
7.1 Preference +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy‐ backs, redemptions
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy‐ backs	60,841,209	60,841,209
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter	4,000,000		Exercise price $0.60	Expiry date 26 October 2012

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

7.10 Expired during quarter	500,000		Exercise price $1.00	Expiry date 1 October 2010
7.11 Debentures (totals only)
7.12 Unsecured notes(totals only)

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).

• 2 This statement does give a true and fair view of the matters disclosed.

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Sign here: ............................................................ Date: 18 October 2010 (Director/Company secretary) Print name: Anthony Billis

Notes

• 1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

• 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities .

• 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

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• See chapter 19 for defined terms.

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